Articles at HHG
Family Court Impact on Third Parties
Posted: 08-12-2011
The Family Law Act gives explicit power to the Court to alter the rights of third parties as part of matrimonial property proceedings. This enables the Family Court to make an order or grant an injunction that is directed to, or alters the rights, liabilities or property interests of a third party. Though the exercise of the power is unlikely to be common, the impact of marriage breakdown extending now to lenders, creditors, insolvency practitioners, business associates and perhaps even employees cannot be denied.
A third party is defined very broadly to include individuals such as friends or relatives of the parties to the marriage, business associates and financial institutions. Parties cannot contract out of the provisions and any act done under an order under the provisions, even if that act is contrary to another law or instrument, is deemed not to be in contravention.
One saving is the fact that the Family Court may only interfere with third party property interests if certain criteria are met, including whether the involvement of a third party is necessary to ensure the married parties can obtain their just entitlements at law.
Generally, the Court takes a conservative approach when dealing with third party interests. But if the Court exercises the power, proceedings may become far more time consuming and expensive than would otherwise be the case and the business dealings of those who are not parties to the marriage may be opened up in a public forum, and scrutinised. Ask your solicitor for more information about the potential implications in your specific circumstances.
This is general information only, and does not constitute specific legal advice. If you would like further information in relation to this matter or other legal matters please contact us on Freecall 1800 609 945 or email us now.
